AP-NORC Poll: Inflation, Tariffs Squeeze Shoppers This Holiday Season/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ An AP-NORC poll reveals that this holiday season, many Americans are feeling the financial squeeze. Under President Donald Trump’s second term, consumers report higher prices, tight budgets, and decreased optimism about the economy — echoing frustrations from when inflation surged under President Biden in 2022. As inflation lingers and Trump’s tariffs bite, nearly 70% of Americans still view the economy as “poor.”
Quick Look: Key Findings from the AP-NORC Holiday Economy Poll:
- 68% of Americans say the economy is “poor,” the same figure from a year ago.
- 87% report higher grocery prices, while two-thirds say electricity and holiday gift prices are up.
- Half of respondents are cutting back on nonessential purchases or delaying big ones.
- Holiday cheer is dampened by inflation, high interest rates, and concerns over stagnant wages.
- Only 20% expect economic improvement in 2026.
Deep Look: Holiday Spending in 2025: Tighter Budgets and Strategic Shopping
This year’s holiday shopping season is marked by frugality, financial anxiety, and cost-conscious decision-making. The Associated Press-NORC Center for Public Affairs Research poll found that:
- 50% of U.S. adults say it’s harder than usual to afford meaningful holiday gifts.
- Many are dipping into savings or relying on “buy now, pay later” plans.
- More than 40% are delaying large purchases and looking for discounts more aggressively.
Americans, regardless of political affiliation, are adjusting their spending habits. While Democrats are slightly more likely to seek bargains or cut back, Republicans are also trimming expenses amid economic uncertainty.
Inflation Remains a Pain Point — Despite Slower Rates
While inflation is lower than the 40-year high reached in 2022, it’s the price levels, not the rate, that continue to frustrate shoppers.
- Groceries remain the most-cited source of inflation pain (87%).
- Holiday gift and electricity prices are also hitting wallets hard.
- Gas prices remain elevated for about half the population surveyed.
Despite easing inflation, many Americans still feel squeezed — an issue that now stretches across both the Biden and Trump presidencies.
Trump’s Economic Messaging vs. Voter Experience
President Trump has declared that inflation is over and that the economy is booming. On Truth Social, he wrote:
“When will people understand what is happening?… America is booming again!”
However, the poll shows that most Americans disagree. The economic strain seen during the Biden administration has persisted — or in some cases, intensified — during Trump’s return to office in 2025.
Critics point to Trump’s renewed tariff policies, which have raised costs on imported goods and disrupted supply chains. Supporters argue his tax cuts and investment-focused foreign trips will yield long-term gains.
But few are feeling relief now.
Real People, Real Struggles: Holiday Choices in 2025
Sergio Ruiz, 44, a Trump voter and real estate entrepreneur in Arizona, says he’s using installment plans to spread out Christmas expenses for his kids. While he supports the president, he believes the key is raising income levels for working Americans.
Andrew Russell, 33, a Democratic voter in Illinois, has shifted from buying international gifts online to local in-person shopping to avoid added costs from tariffs.
Millicent Simpson, 56, a Medicaid recipient in Ohio, blames the Trump administration for rising financial pressure:
“He’s messing with the government assistance for everybody, young and old.”
Consumer Confidence for 2026 Remains Low
Looking ahead, most Americans don’t see economic improvements on the horizon:
- Only 2 in 10 believe the economy will improve next year.
- 4 in 10 expect things to get worse.
- Republicans are slightly more optimistic, but even within Trump’s base, concerns persist.
This marks a drop in hope compared to December 2024, when 40% believed 2025 would be better than the previous year.
The White House Response: A Nationwide Economic Messaging Tour
In response to the poll, White House officials say President Trump will tour key swing states in early 2026 to promote his economic agenda. However, his recent comments — like urging Americans to “buy fewer dolls and pencils” — have drawn criticism as out of touch with struggling families.
Final Takeaway: Holiday Stress Reflects Deeper Economic Discontent
Even though inflation has slowed, the effects of high prices, tight wallets, and policy frustration continue to cloud the holiday season. Whether you’re a parent trying to stretch your gift budget, a small business owner watching costs rise, or a student facing higher energy bills — this year’s holiday season isn’t feeling quite so jolly.
As 2026 approaches, the disconnect between official economic messaging and everyday reality remains a major issue for the Trump administration — and could define the political landscape heading into the midterms.
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